Hello,
Simply speaking it is just a way of keeping track of various departments, cost centres, projects inside the company.
You can have 2 levels, e.g. level 1, department, level-2, cost-centre.
When you create the dimension you decide if it should be of level 1 or level 2.
You can by this keep track of cost centres inside a department inside a company.
Default the system havs 1 level of dimensions. That is, you can keep a simple track of departments or cost centres or whatever, but just in one level. That is, you can keep track of departments only or cost centres only inside a company.
If you don't need dimensions you can set it to 0 in the company setup.
Here you can choose between level 0, 1 or 2.
I hope this gives meaning to you.
Admin